A Rich Life

The Old Ideas on Saving & Investing Don't Work -- Here's What Does

VII #24: Does Shiller Endorse Valuation-Informed Indexing?

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I’ve posted column entry #24 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called Does Shiller Endorse Valuation-Informed Indexing?

Juicy Excerpt: Shiller has said surprisingly little about how to implement his investing ideas. His focus has been on doing research and on setting forth a new theory of how stockinvestingworks (the subtitle of his book is: “The National Bestseller That Revolutionized the Way We Think About the Stock Market.”). The idea behind this column is to put forward one person’s take on where our understanding of how stock investing works is headed presuming that Shiller’s ideas prevail in days to come. My ultimate aim is to launch a national debate in which we will hear thousands of people offering views on these topics, some of them likely being at least somewhat in line with what I suggest here and some of them likely sketching our very different perspectives on where things are headed.

Read more:http://www.valuewalk.com/valuation-informed-indexing/ivaluationinformed-indexingi-24-brdoes-shiller-endorse-valuationinformed-indexing/#ixzz1Ak5maZK1

Financial Odyssey Blog Posts “Interview with Rob Bennett”

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The Financial Odyssey blog has posted its Interview with Rob Bennett, from A Rich Life.

Juicy Excerpt #1: You need to become friends with the big bloggers. Then they promote you and that’s how you move up. I feel great respect and affection for most of the big money bloggers. But I am not able to endorse Buy-and-Hold! I bill myself as the world’s leading critic of this investing strategy. That has unfortunately caused strained relations between me and a number of the big bloggers in this field (I am banned from contributing comments to a number of blogs that I love!). I have hopes that the level of defensiveness over Buy-and-Hold will diminish over time and that I will become good friends with all these people. But I cannot say that my investing views have helped my rise as a blogger even a tiny bit.

Juicy Excerpt #2: I’d be Sarah Palin. I get an incredible kick out of her. She is doing to the field of politics what I am trying to do to the field of personal finance –shaking it up a bit!

Juicy Excerpt #3: Wow, I can’t believe you were banned from some blogs…well let it be known that everyone is welcome here at Financial Odyssey and comments are encouraged.  I think a little debate every now and then is good.  Thanks again to my new pal Rob Bennett for the interview.

What the Stock Investing Experts Don’t Want You to Know and Seven Other Guest Blog Entries

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Set forth below are links to eight Guest Blog Entries on the Valuation-Informed Indexing strategy:

1) Is Buy-and-Hold Just a Marketing Gimmick? (this is actually a thread-starter at the Early Retirement Extreme Forum);

2) Risk Revisited (this is actually a thread-starter at the Early Retirement Extreme Forum);

3) Don’t Give Up on Stocks, Give Up on Buy-and-Hold, at The Daily Middle;

4) It’s Impossible to Plan a Retirement Without Looking at Valuations, at Financial Uproar;

5) It’s the End of the Investing World As We Know It (and I Feel Fine), at Financial Uproar;

6) Rob Bennett: Crazy? Or Crazy Like a Fox?, at Financial Uproar;

7) What the Stock Investing Experts Don’t Want You to Know, at Future Storm; and

8 ) What If Everything You Thought You Knew About Retirement Planning Turned Out to be Wrong?, at My Retirement Blog.

Financial Uproar Blog — Rob Bennett: Crazy? Or Crazy Like a Fox?

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The Financial Uproar blog has posted an article about my efforts to get the errors in the Old School safe withdrawal rate studies corrected entitled Rob Bennett: Crazy? Or Crazy Like a Fox?

Juicy Excerpt #1: I’ve always liked what Rob had to say. He has well thought out opinions about everything he writes. He’s clearly a very intelligent guy. So I decided to click through to his blog (A Rich Life) to see what he writes about. Turns out Rob is just a little crazy.

Juicy Excerpt #2: Anyone who pisses off the establishment piques my interest. Nothing ever worth accomplishing was ever achieved without bucking conventional thinking. I started reading more into Rob’s archives. Rob is doing his best impression of Galileo or Bill Gates, except his cause is the withdrawal rate on retirement calculators.

Juicy Excerpt #3: I do have to give Rob credit for writing stuff that no one else is writing about…. Maybe the problem is that Rob is so intelligent that what he says goes right over my head. Or, maybe he’s batshit insane. I honestly don’t know. What I do know is that the world of personal finance blogging needs more Rob Bennetts. He’s passionate. He’s intelligent. He’s writing things that go against the grain. I’d much rather read one of Rob’s posts than another piece on emergency funds or frugal ways to spend the summer. Keep on keeping on my crazy friend.

The Future of Investing & Seven Other Guest Blog Entries re Valuation-Informed Indexing

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Set forth below are eight Guest Blog Entries discussing various aspects of the Valuation-Informed Indexing investing strategy and on the Passion Saving money management strategy.

1) The Future of Investing, at the Get Rich Slowly forum (this is actually a thread-starter at a discussion board rather than a Guest Blog Entry — I put it forward in this form at the request of J.D. Roth, the owner of both the blog and the forum).

2) Why Buy-and-Hold Investing Can Never Work (this is actually a thread-starter at a discussion board rather than a Guest Blog Entry — I put it forward in this form at the request of J.D. Roth, the owner of both the blog and the forum).

3) The Prospector Would Still Be at that Same Spot Still Digging With His Ever-More-Callused Fingers, by Arty, at A Rich Life.

4) I’d Be the Growlingest Bear on the Internet If Only I Were a Bear, at The Shark Investor.

5) Resistance Is Futile, Pop at Pop Economics.

6) Saving 10 Percent Is Death, at Plonkee Money.

7) Price Drops Are Good News for Young Investors in the Stock Market, at Generation X Finance.

8 ) A New Approach to Staying the Course, at Clever Dude.

Daily Caller Article #2 — How We Invest Is a Political Question

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I recently wrote a second article for the Dailer Caller web site. This one is entitled How We Invest Is a Political Question.

Juicy Excerpt: Bull markets cause the Invisible Hand of our free market economy to reward and punish businesses that otherwise would not be so rewarded or punished. For the time that investors believed that their accumulated wealth was far greater than what it was in reality, businesses selling luxury goods possessed a great edge over businesses selling reasonably priced goods.

Investing: The New Rules #6 — John Bogle’s Evil Twin

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I’ve posted Entry #6 in my Investing: The New Rules column at the Death By 1,000 Papercuts site. It’s entitled John Bogle’s Evil Twin.

Juicy Excerpt: My claim can be reduced to five words — Valuations Affect Long-Term Returns. Is it true? Or is it not true? You decide. But, if you decide that it’s true, please don’t then say that you think Buy-and-Hold still makes sense. Buy-and-Hold is the strategy that says you do not need to change your stock allocation in response to changes in valuations. What’s being described at this place is the strategy that says you must do so. Buy-and-Hold is the opposite of what is being described here.

The Bankers Did Not Do This To Us! and Seven Other Guest Blog Entries on Valuation-Informed Indexing

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Set forth below are links to eight Guest Blog Entries that I have written on the Valuation-Informed Indexing investing strategy or that others have written commenting on it.

1) A Better Approach to Investing, by Michael Harr, at Wealth Uncomplicated.

2) Talk Back to the Investing Experts, at Save Buy Live.

3) The Bankers Did Not Do This to Us, at Weakonomics.

4) Passive Investing Is a Strategy for Extremists, at Money and Such.

5) Passive Investing Is for Extremists: The Critique, by Shadoz at Money and Such.

6) Dogma Is the Enemy of the Middle-Class Investor, at Oblivious Investor.

7) The More You Know About Investing, The Less You Know About Investing, at My Journey to Millions.

8 ) I Learned How to Invest By Learning How to Save, at My Life ROI.

Stock Volatility Kills & Seven Other Guest Blog Entries on Valuation-Informed Indexing

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Set forth below are links to eight Guest Blog Entries that I have written on the Valuation-Informed Indexing investing strategy or that others have written commenting on it (actually one is about the Passion Saving strategy of money management — how did that one get mixed in?!).

1) Stock Volatility Kills, at the Moolanomy blog.

2) Why Long-Term Timing Works Even Though Short-Term Timing Doesn’t, at the Money and Such blog.

3) We’re All Better Off as a Result of the Stock Crash, at the Money and Such blog.

4) Cash Is a Strategic Asset Class, at the Out of Your Rut blog.

5) Advice on Options from a Fellow Who Knows Nothing About Options, at Options for Rookies (at least I thought that was where I saw it!).

6) Save Your Money by Paying Yourself Last, at Digerati Life.

7) You Use a Simple Price-to-Earnings Ratio to Help People See the Fraud in the Market , by Larry Weber at the A Rich Life blog.

8 ) The Difference Between the Multiply-by-25 Rule and the 4 Percent Rule, at the Moolanomy blog.

The Risks of Buy-&-Hold Investing, & Seven Other Guest Blog Entries on Valuation-Informed Indexing

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Set forth below are eight Guest Blog Entries I have written dealing with the Valuation-Informed Indexing investment strategy or that others have written commenting on it.

1) The Risks of Buy-and-Hold Investing, at the Pop Economics blog.

2) Valuation-Informed Indexing Is Risk-Diminished Investing, submitted to Pop Economics but ultimately posted at A Rich Life.

3) When Stock Prices Crash, Where Does the Money Go?, at the Budgets Are Sexy blog.

4) Stock Market Strategy: Timing Based on Long-Term Views, at the The Smarter Wallet blog.

5) Stocks Are a Lot Less Risky Than You Think, at the Money and Such blog.

6) Today’s Retirement Planning Advice Is a Sick Joke, at the Weakonomics blog.

7) Rational Investing in Irrational Markets, at the Weakonomics blog.

8 ) A Critique of Valuation-Informed Indexing, by “Schroeder,” at the Money and Such Blog